PFMP · Question #607
PFMP Question #607: Real Exam Question with Answer & Explanation
The correct answer is A: The criteria to optimize the portfolio may be the same as that used in the scoring model. See the full explanation below for the reasoning.
Question
Assume your automotive company is new to formal portfolio management. It has had for years a strategic plan and tries to be first to market for new and improved features on its vehicles each model year. You were hired as the portfolio manager to provide a more disciplined approach for determining new products to pursue as well as existing ones that should be terminated. So far, you have set up an approach, established categories for the various components, and determined a method to rank and score new proposals for consideration. Now you are working to set up practices to follow to optimize the portfolio. In doing so, it is important to note that:
Options
- AThe criteria to optimize the portfolio may be the same as that used in the scoring model
- BA portfolio management information system should be set up
- CFuture investment requirements are a key criterion to consider
- DCompliance with organizational standards cannot be overlooked
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